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Industrial engineering is a subject dealing with the optimization of processes or systems. The equipment manufacturing industry is the core of manufacturing. Its development influences the comprehensive competitiveness of a country. This article analyzes the current status of equipment manufacturing industry of China and points out its problems. At the same time, the article combines the practical situation of the enterprise that the author works in, discussing how to apply industrial engineering to optimize the layout of plant, the arrangement of equipment, the productivity and the economy of man-hour. The application of industrial engineering in the enterprise makes delightful progress.